Full-Scale Redevelopment of Korea's First Residential-Commercial Complex, Seodaemun Jawon Sangga, Underway

LH Launches Redevelopment Project for 'First Mixed-Use Residential and Commercial Complex Zawon Sangga'
Reborn as a Complex Facility Including 309 Residential Units, Public Rental Shops, and Living SOC Facilities
Aiming to Form Resident Representative Meeting Within the Year, Select Design and Construction Firms, and Start Resident Relocation by End of Next Year

Bird's-eye view of Jawon Shopping Center.

[Asia Economy Reporter Kangwook Cho] The redevelopment project for Jwawon Sangga in Seodaemun-gu, Seoul, the first residential-commercial complex building in South Korea that has been standing for 55 years, is set to be actively pursued.

Korea Land and Housing Corporation (LH) announced on the 19th that it will officially commence the project following its designation as the project implementer for the 'Seodaemun Jwawon Sangga Redevelopment Project' on the 12th.

'Jwawon Sangga' is the first residential-commercial complex building in South Korea, completed in 1966 and located in Namgajwa-dong, Seodaemun-gu, Seoul. Last March, a safety inspection rated it as a disaster-risk facility with an E grade, indicating urgent maintenance is needed to protect residents' lives and property. However, due to lack of profitability, private sector participation in the project was low.

Accordingly, in December last year, Jwawon Sangga was selected as a site for the Urban Regeneration New Deal recognition project, and the public sector will now lead the redevelopment project.

The Urban Regeneration New Deal recognition project accepts proposals from residents and public institutions, conducts competitions, and upon selection, recognizes small-scale point projects as urban regeneration without requiring the establishment of an urban regeneration activation plan, providing national funding support.

The 'Jwawon Sangga Redevelopment Project' is a maintenance project led by the public sector that secures public interests such as expanding public rental housing supply while offering public special measures like relaxed floor area ratio and donation requirements. It will be carried out through a management disposition method, which converts existing land or building ownership rights into rights related to the newly developed land and buildings under the maintenance project and distributes them accordingly.

Given that it is a hazardous building, the project will be expedited to ensure residents' safety, utilizing a phased maintenance approach for existing tenants and merchants. Temporary relocation shops will be provided to guarantee livelihoods, and after project completion, newly established public rental shops will be offered.

For this project, LH has been continuously engaging with residents through explanatory meetings since last year to explain the project’s purpose and necessity, gather residents' demands, and discuss project plans.

As the public project implementer, LH will be responsible for overall project management, financing, housing supply, commitment to purchase unsold housing, and construction completion, while residents will form a residents' representative meeting or association to take the lead in major decisions such as design and contractor selection.

Jwawon Sangga will be reborn as a complex facility on approximately 3,000 square meters, including residential facilities such as a 34-story apartment and officetel, retail facilities, and living SOC (Social Overhead Capital) facilities.

The apartment will consist of 239 units in total, divided into 166 for sale and 73 for rent, with types including 39㎡ (56 units), 45㎡ (62 units), and 59㎡ (121 units).

The officetel will have a total of 70 units for sale, divided into 35㎡ (58 units) and 50㎡ (12 units).

Notably, some of the retail facilities will be operated as public rental shops to serve as business spaces for existing shop tenants to resettle, and the installation of living SOC facilities such as sports facilities will expand the insufficient community facilities in the area.

LH plans to hold a residents' explanatory meeting in August to provide detailed project schedules and plans and to form a residents' representative meeting.

Additionally, after completing the selection of design and construction companies by the end of this year, the goal is to obtain approval for the management disposition plan and begin resident relocation by the end of next year. Since Jwawon Sangga is designated as a disaster-risk facility with an E grade, LH plans to support Seodaemun-gu in promptly establishing resident safety measures.

To swiftly establish resident relocation measures, LH will actively collaborate with Seodaemun-gu on conducting basic investigations of the existing building, preparing temporary relocation shops, and facilitating relocation loan arrangements for housing residents.

Park Cheolheung, Head of LH Metropolitan Housing Supply Special Headquarters, stated, “Through the redevelopment project of Jwawon Sangga, which has been a local issue due to its aging building, LH will secure residents' safety and actively cooperate with residents and local governments to fulfill its public role so that residents can resettle in the area and lead sustainable lives.”